Recently, someone asked me how to trade Taiwan index futures, so I decided to organize my own experience. Actually, Taiwan index futures are simply a tool to track the Taiwan stock market, divided into the Big Taiwan and Small Taiwan contracts. If you want to understand what the recent full quotes of Small Taiwan are, basically it’s checking the complete trading quotes for the nearest expiration month.

When I first started, I was most confused about why I needed to choose Taiwan index futures. Later, I realized that this instrument allows for long and short operations, leverage, long trading hours (19 hours a day), and low transaction fees. Especially compared to stock investing, futures fees can be as low as 0.01% of the underlying investment amount, which is quite cost-effective for frequent traders.

The main difference between Big Taiwan and Small Taiwan is the multiplier. Big Taiwan uses a NT$200 multiplier, while Small Taiwan uses NT$50. So, if the index is at 15,600 points, buying one contract of Big Taiwan is worth NT$3.12 million, and Small Taiwan is NT$780k. The margin requirement is also four times higher for Big Taiwan. I personally prefer trading Small Taiwan because the risk is relatively more manageable.

Opening an account is very simple; just find a futures brokerage online and open an account, as long as you are over 20 years old. After opening, you need to deposit margin to trade. A special reminder here: do not treat the margin as your actual investment amount. Buying Small Taiwan requires NT$46k margin, but the underlying investment value is actually NT$780k, with leverage of about 17 times.

There are two trading sessions: the regular session from 8:45 AM to 1:45 PM, and after-hours trading from 3:00 PM to 5:00 AM the next day. Each contract has an expiration date, which is the third Wednesday of that month. If you want to hold your position beyond expiration, you need to do a “rollover,” closing the current contract and opening a new one.

For technical analysis, I mainly look at moving averages, RSI, and MACD. Simply put, if the price is above the 50-day and 200-day moving averages, it’s a bullish signal; otherwise, be cautious. RSI showing a bullish divergence (making new lows but RSI not making new lows) often indicates a potential reversal to the upside. MACD crossing above the signal line is also a good reference.

Risk management is the most important. Since leverage is so high, losses can be magnified several times. My approach is to set a maximum acceptable loss first, then calculate how many lots to trade. For example, if I want to invest NT$2,340,000, using an index price of 15,600 and a multiplier of 50, that’s 3 lots of Small Taiwan. Always set stop-loss orders when trading, or use options to hedge risks.

Many people ask what “near full” of Small Taiwan means. It actually refers to viewing the complete quote data. “Near” indicates the nearest expiration month, and “full” includes all trading sessions, both day and night. You can search for “Small Taiwan near full” on trading platforms to see it.

Finally, a reminder: Taiwan index futures are generally not suitable for long-term holding; they are mainly short-term trading tools. Rollover costs accumulate, and constant monitoring is required. If you are a beginner, it’s recommended to practice with a demo account first, fully understanding leverage and risk management before trading with real money. Taiwan index futures can make quick money, but they can also lead to rapid losses. Be very cautious.